Apple Offered To License Their Patents To Samsung For $30-$40 Per Device

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Apple executives said that the company was shocked when Samsung debuted their first Galaxy smartphones.  However Samsung was a major supplier of the company so they were willing to make a deal with them.  In October 2010, Apple offered to license their portfolio of patents to Samsung as long as they were willing to pay $30 per smartphone and $40 per tablet.

“Samsung chose to embrace and imitate Apple’s iPhone archetype,” Apple said in an Oct. 5, 2010 presentation to Samsung. “Apple would have preferred that Samsung request a license to do this in advance. Because Samsung is a strategic supplier to Apple, we are prepared to offer a royalty-bearing license for this category of device.”

Apple even offered to give Samsung a 20% discount if they were willing to cross-license their portfolio back to Apple.  Apple wanted royalties on Samsung’s non-Android smartphones including devices running on Symbian and Bada operating systems.  For 2010 it is estimated that Samsung would have owed Apple $250 million, which was far less than Apple was spending on components.

The October 5, 2010 offer was in a slide contained in a presentation made public on Friday.  Apple warned Samsung in August 2010 that they believed the company was copying the iPhone and was infringing Apple patents.  Both Steve Jobs and Tim Cook spoke to Samsung about the issue.  Below is a PDF of the October 2010 licensing offer made to Samsung from Apple.

Samsung Apple Oct 5 2010 Licensing

This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at
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